BNY Mellon to tokenize deposits using blockchain

BNY Mellon is currently exploring the launch of tokenized deposits to enable clients to make payments via blockchain. At the time of this post, BNY currently processes about $2.5 trillion in payments per day and oversees $55.8 trillion in assets under custody.

If BNY Mellon brings tokenized deposits to its payments game, we could see massive efficiency upgrades — real-time settlements and reduced friction could shake up the legacy rails. Banks have been testing the blockchain technology from quite long time and recent regulations about stablecoins has accelerated this growth.

But scaling blockchain to handle trillions in daily flow is a tech and regulatory gauntlet. Integrating with old systems while navigating compliance isn’t plug and play, especially at this volume. BNY Mellon processing trillions daily embracing.

Tokenization is the institutional domino that rewrites our entire financial infrastructure. BNY is currently working with 30 global financial institutions working with SWIFT technology. They are building a blockchain based shared ledger and their first prototype is coming out soon.